Assured Guaranty Ltd. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Assured Guaranty Ltd. has filed its 2023 10-K annual report, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ASSURED GUARANTY LTD (AGO) filed a Annual Report (10-K) with the SEC on February 28, 2024. Assured Guaranty Ltd. reported its 2023 fiscal year results on February 28, 2024. The company's fiscal year concluded on December 31, 2023. The filing is a 10-K annual report. The company is incorporated in Bermuda. The SIC code for Assured Guaranty Ltd. is 6351 (Surety Insurance).

Why It Matters

For investors and stakeholders tracking ASSURED GUARANTY LTD, this filing contains several important signals. This filing provides a comprehensive overview of Assured Guaranty Ltd.'s financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and outlook. As a surety insurance provider, the details within this 10-K are vital for understanding the company's exposure to credit risk and its ability to meet its obligations, particularly in the context of municipal and structured finance markets.

Risk Assessment

Risk Level: medium — ASSURED GUARANTY LTD shows moderate risk based on this filing. The company operates in the surety insurance sector, which is subject to regulatory oversight and market fluctuations that can impact financial performance and solvency. The 10-K filing will detail these specific risks.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Assured Guaranty Ltd.'s exposure to credit and market risks, and its strategies for mitigation.

Key Numbers

• 2023-12-31 — Fiscal Year End (The reporting period for the 10-K filing.)
• 2024-02-28 — Filing Date (The date the 10-K was submitted to the SEC.)
• 6351 — SIC Code (Standard Industrial Classification for Surety Insurance.)
• 001-32141 — SEC File Number (The SEC's file number for the company.)

Key Players & Entities

• ASSURED GUARANTY LTD (company) — Filer name
• AGO (company) — Ticker symbol
• 10-K (filing) — Form type
• 2024-02-28 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• HAMILTON BERMUDA (location) — Business address city and country
• 441-279-5700 (phone) — Business phone number
• SURETY INSURANCE (industry) — Standard Industrial Classification

FAQ

Risk Factors

• Financial Risks [high — financial]: The company's financial performance is subject to various risks including market volatility, interest rate changes, and credit quality of its investments and insured obligations.
• Regulatory Environment [medium — regulatory]: As an insurance provider, Assured Guaranty Ltd. operates under stringent regulatory frameworks in multiple jurisdictions, which can impact its business operations and profitability.
• Market and Economic Conditions [medium — market]: Adverse changes in economic conditions, particularly in the municipal finance market, could negatively affect the demand for the company's financial guaranty insurance products.

Key Dates

• 2024-02-28: 10-K Filing — Submission of the annual report for the fiscal year 2023.
• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Key Financial Figures

• $0.01 — nge on which registered Common Shares $0.01 par value per share AGO New York Stock
• $55.80 — Stock Exchange on that date, which was $55.80). For purposes of this information, the
• $35.2 billion — nd Point now manages CLOs consisting of $35.2 billion in assets under management (AUM) as of

Filing Documents

• ago-20231231.htm (10-K) — 7104KB
• ago-12312023x10kex417.htm (EX-4.17) — 121KB
• ago-12312023x10kex101.htm (EX-10.1) — 22KB
• ago-12312023x10kex1037.htm (EX-10.37) — 11KB
• ago-12312023x10kex1069.htm (EX-10.69) — 108KB
• ago-12312023x10kex211.htm (EX-21.1) — 8KB
• ago-12312023x10kex22.htm (EX-22) — 14KB
• ago-12312023x10kex231.htm (EX-23.1) — 3KB
• ago-12312023x10kex311.htm (EX-31.1) — 13KB
• ago-12312023x10kex312.htm (EX-31.2) — 13KB
• ago-12312023x10kex321.htm (EX-32.1) — 6KB
• ago-12312023x10kex322.htm (EX-32.2) — 7KB
• ago-12312023x10kex971.htm (EX-97.1) — 88KB
• agllogoa.jpg (GRAPHIC) — 43KB
• ago-20231231_g1.jpg (GRAPHIC) — 277KB
• ago-20231231_g2.jpg (GRAPHIC) — 146KB
• image_112a.jpg (GRAPHIC) — 39KB
• 0001273813-24-000007.txt (&nbsp;) — 37066KB
• ago-20231231.xsd (EX-101.SCH) — 238KB
• ago-20231231_cal.xml (EX-101.CAL) — 222KB
• ago-20231231_def.xml (EX-101.DEF) — 1317KB
• ago-20231231_lab.xml (EX-101.LAB) — 2237KB
• ago-20231231_pre.xml (EX-101.PRE) — 1715KB
• ago-20231231_htm.xml (XML) — 7807KB

Forward Looking Statements

Forward Looking Statements This Form 10-K contains information that includes or is based upon forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements give the expectations or forecasts of future events of Assured Guaranty Ltd. (AGL) and its subsidiaries (collectively with AGL, Assured Guaranty or the Company). These statements can be identified by the fact that they do not relate strictly to historical or current facts and relate to future operating or financial performance. Any or all of Assured Guaranty's forward looking statements herein are based on current expectations and the current economic environment and may turn out to be incorrect. Assured Guaranty's actual results may vary materially from those expressed in, or implied or projected by, the forward-looking information and statements. Among factors that could cause actual results to differ adversely are: significant changes in inflation, interest rates, the world's credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; geopolitical risk, including Russia's invasion of Ukraine and risk of intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East, confrontation over Iran's nuclear program, United States (U.S.) – China strategic competition and pursuit of technological independence; global terrorism risk with threats increasing from conflicts in the Middle East and Ukraine/Russia, and the polarized political environment of the 2024 U.S. presidential election; the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets; the possibility of a U.S government shutdown, payment defaults on the d

Business

Business 6 Overview 6 Insurance 6 Insurance Companies 6 Support of the European Insurance Subsidiaries 7 Insurance Portfolio 9 Exposure Limits, Underwriting Procedures, and Credit Policy 12 Importance of Financial Strength Ratings 14 Competition 15 Asset Management 17 Strategic Transactions 17 Asset Management Strategies 18 Investments 18 Risk Management 20 Regulation 24 Human Capital Management 34 Tax Matters 35 Description of Share Capital 44 Other Provisions of AGL ' s Bye-Laws 45 Available Information 45 Item 1A.

Risk Factors

Risk Factors 46 Risks Related to Economic, Market and Political Conditions and Natural Phenomena 48 Risks Related to Estimates, Assumptions and Valuations 51 Strategic Risks 52 Operational Risks 55 Risks Related to Taxation 58 Risks Related to GAAP, Applicable Law and Litigation 62 Risks Related to AGL's Common Shares 64 Item 1B. Unresolved Staff Comments 65 Item 1C. Cybersecurity 66 Item 2.

Properties

Properties 67 Item 3.

Legal Proceedings

Legal Proceedings 68 Item 4. Mine Safety Disclosures 68 Information About Our Executive Officers 68 PART II 70 Item 5. Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 70 Item 7. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 72 Overview 72

Business

Business 72 Economic Environment 73 Key Business Strategies 74 Executive Summary 77 Financial Performance of Assured Guaranty 78 Other Matters 80 Results of Operations 81 Critical Accounting Estimates 81 Results of Operations by Segment 82 Insurance Segment 82 Asset Management Segment 90 Corporate Division 91 Other 91 Reconciliation to GAAP 93 Non-GAAP Financial Measures 95 Insured Portfolio 99 Liquidity and Capital Resources 105 AGL and its U.S Holding Companies 105 Insurance Subsidiaries 109 Investment Portfolio 112 Lease Obligations 116 Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles 116 Consolidated Cash Flow Summary 117 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 118 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 123 Report of Independent Registered Public Accounting Firm 124 Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022 127 Consolidated Statements of Operations for Years Ended December 31, 2023, 2022 and 2021 128 Consolidated Statements of Comprehensive Income (Loss) for Years Ended December 31, 2023, 2022 and 2021 129 Consolidated Statement of Shareholders' Equity for Years Ended December 31, 2023, 2022 and 2021 130 Consolidated Statements of Cash Flows for Years Ended December 31, 2023, 2022 and 2021 131

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 134 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 229 Item 9A.

Controls and Procedures

Controls and Procedures 229 Item 9B. Other Information 230 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 230 PART III 231 Item 10. Directors, Executive Officers and Corporate Governance 231 Item 11.

Executive Compensation

Executive Compensation 231 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 231 Item 13. Certain Relationships and Related Transactions, and Director Independence 231 Item 14. Principal Account ant Fees and Services 231 PART IV 232 Item 15. Exhibits and Financial Statement Schedules 232 Item 16. Form 10-K Summary 237

Signatures

Signatures 238 5 PART I

BUSINESS

ITEM 1. BUSINESS Overview Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) is a Bermuda-based holding company that provides, through its wholly-owned operating subsidiaries, credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets. Assured Guaranty also participates in the asset management business. Through its insurance subsidiaries, the Company applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. If an obligor defaults on a scheduled payment due on an obligation, including a scheduled principal or interest payment (collectively, debt service), the Company is required under its unconditional and irrevocable financial guaranty to pay the amount of the shortfall to the holder of the obligation. Until July 1, 2023, the Company served as an investment advisor to primarily collateralized loan obligations (CLOs) and opportunity funds through Assured Investment Management LLC (AssuredIM LLC) and its investment management affiliates (together with AssuredIM LLC, AssuredIM). Beginning July 1, 2023, the Company participates in the asset management business through its ownership interest in Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point), as described in greater detail under Item 1. Business — Asset Management — Strategic Transactions. On July 1, 2023, Assured Guaranty contributed to Sound Point, LP most of its asset management business, other than that conducted by Assured Healthcare Partners LLC (AssuredIM Contributed Business), as contemplated by the transaction agreement entered into with Sound Point on April 5, 2023 (Transaction Agree

View Full Filing

View this 10-K filing on SEC EDGAR